Queensland Credit Business Duty change
Under Chapter 6 of the Duties Act 2001 Queensland, credit business duty applies to a loan provided one of two nexus requirements is satisfied:
- the loan is to a Queensland resident, or
- any negotiations for the loan take place in Queensland.
An administrative arrangement has been approved to remove imposition of duty if the loan is not to a Queensland resident but negotiations for the loan take place in Queensland. For loans, this means that credit business duty will only be imposed when the loan is to a Queensland resident.
Whether any negotiations for the loan take place in Queensland is no longer relevant, even if the lender is Queensland based, if the borrower is not resident in Queensland and the loan funds are not spent in Queensland [s294(3) Duties Act].
Practice Direction 71.1 set outs the terms and conditions of the administrative arrangement.
Consumer Credit Code Hardship Threshold Increased
Consumer Credit Amendment Regulation (No.1) 2004 inserts two new sections
(22A and 23A) in the Consumer Credit Regulation 1995 which provide that,
respectively, for the purposes of s.66(3) of the Consumer Credit Code, ss 66 to 69,
and, for the purposes of section 86(2) of the Code, part 5, division 3 of the Code,
do not apply to a credit contract under, or in respect of, which the maximum amount
of credit that is or may be provided is more than an amount equal to 110% of the
amount of the average loan size for new dwellings in New South Wales.
The effect of the Regulation is that the maximum loan amounts for which borrowers can seek
hardship relief or apply for a postponement has increased from $125,000 to $340,670
(the current amount which reflects the average NSW housing loan where prices are
highest). The amount will be updated monthly after the release of Australian Bureau
of Statistics figures.
Debt collection regulation
The Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) have issued a brochure outlining their roles in regulating debt collection activities.
Both ASIC and the ACCC oversee laws which protect consumers from inappropriate behaviour by a debt collector.
'Debt collectors must not use physical force, undue harassment or coercion when collecting debts. They must also ensure that their conduct does not mislead or deceive consumers or take unconscionable advantage of them', ASIC's Executive Director Consumer Protection and International Relations, Mr Greg Tanzer, said.
The new brochure sets out the role of each agency in debt collection:
- ASIC deals with debt collection complaints relating to a financial service. This includes debts on credit card accounts, personal or home loans, finance provided by a finance company for items such as a car or household goods, as well as fees for the provision of financial advice;
- the ACCC deals with debt collection complaints relating to goods and non-financial services. This includes debts for telephone services or other utilities, and for the services of tradespeople and professionals, where immediate payment is not required.
The above arrangements also apply when a debt is 'assigned' or sold to a third party, such as a debt buy-out company.
In addition to ASIC and the ACCC, complaints regarding debt collection can also be lodged with state or territory government consumer affairs or fair trading agencies, or an industry dispute resolution scheme (for example, the Banking and Financial Services Ombudsman, if the debt collector is a member of the scheme).
